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Domestic Prices Of Ferro-Alloys In China Have Risen Further
= Raise Of Electricity Fees Enforced From 20th November Has Caused Turning Point For Further Rises
Domestic prices of ferro-alloys in China as of the 2nd week of December have had a further rise in comparison with those at the end of October. The movements of domestic prices for Chinese ferro-alloys during the 1st of September to the 8th of December were as per the table attached hereto.

According to this table, when domestic prices of ferro-alloys in China as of the 8th of December are compared to those at the end of October, <> ferro-silicon : at CNY5,700 per ton as risen by 7.5%, <> silico-manganese : at CNY7,900 per ton as risen by 10.5%, <> high carbon ferro-manganese : at CNY7,350 per ton as risen by 5.7% and <> high carbon ferro-chrome : at CNY7,450 per ton as risen by 2.7%. Domestic prices of Chinese ferro-alloys had once fallen from August - September but have bottomed out in October and turned to a basic tone to rise.

The electricity fees in China have raised from the 20th of November by CNY0.028 ( 5.3% ) per 1 KWH on the average of the whole country but the fees to be paid by provinces are not even, having resulted in the differences to push up cost for production of each ferro-alloy.

Ferro-silicon is the commodity to consume more volumes of electric power for its production and, accordingly, the cost has been obliged to increase by 7.5%. The consumption of electric power for production of silico-manganese is half of that for production of ferro-silicon but an extent to increase cost for production of silico-manganese is 10.5%, which is higher than that for production of ferro-silicon. This increase of the cost for production of silico-manganese has been partially affected by a sharp rise of price for manganese ore as raw material imported into China and it is strongly anticipated that price of manganese ore for shipments to China in February - March of 2010 and afterwards will rise again. This forecast of price for manganese ore to be imported by China in the coming months is supposed to put a substantial influence on price of Chinese silico-manganese.

Domestic price of silico-manganese in China has already risen up to a high level of CNY8,000 per ton and that of high carbon ferro-chrome has also reached a level of CNY7,500 per ton.

The output of crude steel in China in November of 2009 was 47.26 million tons as decreased from that in October but this decline in production of crude steel so far does not put an influence on domestic prices of ferro-alloys in China.
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last modified : Fri 18 Dec, 2009 [10:09]
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